Grain markets, especially futures markets, took a jump over the past week. This was mainly driven by weather factors, snow in the US and dryness concerns in parts of Europe and Russia. These issues have mainly affected futures markets, driven by fund activity. This has given a slight lift to physical markets, but traders are not yet convinced that these issues will result in real problems. Sentiment is bullish once again, but this may not be permanent.

The US issue has resulted in potential damage to large areas of wheat where crops are now within a month of harvest. Up to a foot of snow, with wind, has caused an amount of lodging, leading to potential losses. These crops will still be filling and this could come to a sudden stop. Wet is also causing concerns in other areas.

Dryness is the major concern in Europe, with more advanced crops now being more susceptible to such stresses.

Back in the US, it seems that growers may move a proportion of their acres back to maize against the background of falling soya bean prices.

Native grain prices are up slightly on last week. Old-crop wheat is currently put at €182 to €183/t to the trade, but barley is more static at €163 to €165/t. November wheat is put at €173 to €175/t, but this was stronger earlier in the week. New-crop barley is around €162 to €163/t. On Tuesday last, Glanbia offered €176/t for dry wheat and €164/t for barley for November. On Wednesday, it offered €142 and €130/t for green wheat and barley respectively, for September.